Oregon Promissory Note Template [PDF + Download]

A promissory note in Oregon is a legally binding document that obligates the borrower to repay the loan amount to the lender under agreed terms. It formalizes the loan agreement in Oregon by specifying key details, such as the loan amount, repayment schedule, due dates, and interest rates.

Since it is enforceable in court, it is recommended to consult a lawyer to draft one or use professionally designed promissory note templates that can be customized to fit the specific agreement and ensure accuracy and compliance.

In this article, we’ll decipher the promissory note meaning and explore its types, key requirements, considerations, and conditions for revocation.

Types of Promissory Notes in Oregon

In Oregon, promissory notes are generally divided into two main types—secured and unsecured. The key difference lies in whether the agreement includes provisions that offer security to the lender. Let's take a closer look at each of the types:

#1. Secured Promissory Notes

A secured promissory note requires the borrower to back their repayment promise with collateral—an asset or property they own. This collateral serves as security that the repayment agreement in Oregon will be fulfilled, ensuring the lender has a way to recover the funds if the borrower fails to meet their obligations.

This type of note is often used in larger or riskier transactions where the lender seeks to minimize potential losses.

#2. Unsecured Promissory Notes

An unsecured promissory note does not involve collateral. It is a simpler document used to outline the repayment terms of a loan. Because it offers no guarantee of repayment beyond the borrower's promise, it carries a higher risk for the lender.

As a result, unsecured notes are often used in loans between friends or family members where trust is the foundation of the agreement.

Signing Requirements for Promissory Notes in Oregon

To ensure a promissory note is valid and enforceable in Oregon, the following requirements must be met:

Signing Requirements

The agreement must be documented in writing.
Both the borrower and lender must be clearly identified.
The terms of the Oregon debt agreement, including the amount, interest rate, and due date, must be outlined.
The borrower must sign the document, and it is recommended that the lender sign as well for clarity.

With these elements in place, the promissory note can serve as valid proof in court. For added legal protection, consider including additional clauses, such as a co-signer or collateral. You can also have the document witnessed or notarized to strengthen its enforceability and ensure the terms are clearly identified.

Statutory Considerations for Oregon Promissory Notes

When creating a promissory note in Oregon, it’s essential to follow the promissory note requirements in Oregon to ensure the note is enforceable. Oregon law sets different interest rate limits depending on the type of loan and the agreement. Here’s a breakdown of usury laws in Oregon:

Type of Loan	Interest Rate Limits
With Contract (ORS 82.010(1))	No limit specified; depends on the agreed rate between the parties
Without Contract (ORS 82.010(1))	9%
Loans of $50,000 or less (ORS 82.010(3)(a))	12% or 5% above the 90-day commercial paper discount rate at the Federal Reserve Bank
Monetary Judgments (ORS 82.010(2))	9% or contract rate, with a lower rate for medical and nursing malpractice cases
Agreements Allowing Early Repayment	Must comply with ORS 82.160 or ORS 82.170

How to Enforce a Promissory Note in Oregon

To enforce a promissory note in Oregon, here are the steps you should follow if the borrower defaults:

Promissory Note Enforcement

Review the promissory note. Ensure it is an enforceable promissory note in Oregon and that the borrower has indeed defaulted.
Contact the borrower. Attempt to resolve the issue amicably through direct communication.
Send a demand letter. Formally request payment, specifying the amount owed and a deadline.
File a lawsuit. If the debt remains unpaid, consider filing a claim in Oregon’s Small Claims Court, which handles disputes up to $10,000.

It is important to note that in Oregon, the statute of limitations for enforcing promissory notes is six years. This means the lender must file a claim within six years from the day the borrower defaults.

Once you obtain a judgment, you can take steps to collect the debt, such as garnishing wages or placing liens on property. Judgment remedies in Oregon generally expire 10 years after the entry of the judgment.

How Can a Promissory Note in Oregon Be Changed or Revoked?

A promissory note in Oregon can be changed or revoked if both parties agree to the changes. Any alterations, such as modifying the repayment terms or canceling the document, must be documented in writing. It’s also important that both the borrower and lender sign the amended note or a cancellation agreement to ensure the changes are legally binding.

If you’re unsure about how to proceed, a promissory note sample can serve as a helpful reference for structuring the changed or revoked agreement.

Without proper documentation and signatures, the original terms may still be enforceable, leaving room for potential disputes. Additionally, always keep a copy of the updated agreement for your records to prevent any misunderstandings.